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Tell You How To Make Use Of Stock Index Futures For Asset Management.

2009/2/4 16:11:00 41927

First, improvement and optimization.

Investment

combination

Investment

The most important economic function of stock index futures is that it can be added to traditional stocks and bonds as an asset.

Investment

The combination plays a significant role in reducing the risk of portfolio volatility and increasing returns on portfolio returns.

Two, avoid stock market system.

risk

Because of the special margin trading system and leverage effect of futures, the risk is magnified. Therefore, stock index futures are considered to be more than stocks and bonds.

risk

A much higher investment way.

But for portfolio funds, they are totally different.

Because of the zero correlation between futures investment and stock investment, the futures owners of the same period are not affected or even better in the stock market when they encounter systemic risk. Therefore, the combined investment with futures positions becomes a big capital to avoid the stock market system.

risk

An excellent investment tool.

Three, through exponential investment hedge

Index investment is a kind of investment idea that aims to synchronize growth with the market based on the principle of fitting target index and tracking target index.

When the stock index futures are launched, the index funds can avoid the risk and improve the return of index funds by selling stock index futures to lock in the return rate when the market is adjusted.

Four, make profits by short selling mechanism.

The biggest feature of stock index futures lies in having short selling mechanism, so that futures investors can trade in any direction of price fluctuations. Even in the economic downturn and stock and bond markets, they can also bring benefits to investors through shorting Stock Index Futures. This is also the most essential difference between investment index futures and investment stocks.

Five. Use index futures to speculate.

Futures speculation refers to futures trading in the futures market with the purpose of gaining spreads.

Due to the existence of leverage, usually the fluctuation of futures prices is more frequent and there is great uncertainty, which gives traders greater profitability and risk.

Using stock index futures speculation, usually based on the risk of price fluctuation voluntarily assumed by speculators, the size of risk is directly related to the earnings of speculators.

Speculators usually take a lot of risks in order to get higher profits.

Editor: vivi